DoD's $26.7M DCGS-A Program Management Support contract awarded to Viatech, Inc. raises value questions

Contract Overview

Contract Amount: $26,663,341 ($26.7M)

Contractor: Viatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-28

End Date: 2016-03-03

Contract Duration: 1,252 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AWARD OF SOLICITATION S3R-0516, DISTRIBUTED COMMON GROUND SYSTEM-ARMY (DCGS-A) PROGRAM MANAGEMENT SUPPORT. IGF::OT::IGF

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to VIATECH, INC. for work described as: AWARD OF SOLICITATION S3R-0516, DISTRIBUTED COMMON GROUND SYSTEM-ARMY (DCGS-A) PROGRAM MANAGEMENT SUPPORT. IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a potentially competitive pricing environment. 2. The contract's cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 3. Performance period of over three years indicates a significant, long-term need for these services. 4. The specific nature of 'program management support' for DCGS-A requires deeper understanding of its criticality. 5. Lack of small business participation noted, potentially limiting broader economic impact. 6. The contract's value, while substantial, needs benchmarking against similar program management support services.

Value Assessment

Rating: fair

The award of $26.7 million for program management support for the Distributed Common Ground System-Army (DCGS-A) appears to be a significant investment. Without direct comparable contract data for identical services, assessing value for money is challenging. The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee. Benchmarking this against other large-scale program management contracts within the Department of Defense or similar complex IT/intelligence systems would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and achieving best value, the ultimate effectiveness depends on the specific requirements and the number of qualified bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially leading to more competitive pricing and better value for the government.

Public Impact

The primary beneficiary is the Department of Defense, specifically the program management of the DCGS-A system. Services delivered include crucial program management support, essential for the successful execution and sustainment of a complex intelligence system. The geographic impact is likely concentrated around the operational areas of DCGS-A and the contractor's performance location, potentially within Maryland. Workforce implications include the direct employment of personnel by Viatech, Inc. for program management roles, and indirectly supports the broader defense intelligence community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize cost increases if not tightly managed.
The substantial award amount necessitates rigorous oversight to ensure funds are used efficiently and effectively.
Limited information on specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The absence of small business participation may limit the broader economic benefits and innovation potential.

Positive Signals

Awarded through full and open competition, suggesting a structured and potentially competitive procurement process.
The contract has a defined period of performance, providing clarity on the duration of the support.
The contractor, Viatech, Inc., was selected, implying they met the required qualifications for this specialized support.
The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework, which can streamline future procurements.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting a major defense intelligence program (DCGS-A). The market for program management and technical support for complex defense systems is highly specialized, often dominated by a few key contractors with deep domain expertise. Spending in this area is driven by the need to maintain and modernize critical intelligence, surveillance, and reconnaissance (ISR) capabilities. Comparable spending benchmarks would likely be found within other large-scale defense IT and systems integration programs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that the prime contract was awarded to a large business, and opportunities for small businesses to participate in this specific contract are limited unless they are direct subcontractors to Viatech, Inc. The lack of a small business set-aside or subcontracting plan may limit the direct economic impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed performance data may be restricted. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Distributed Common Ground System-Army (DCGS-A)
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense IT Program Management
Engineering Services Contracts
Department of Defense IT Modernization

Risk Flags

Cost-Plus-Fixed-Fee contract type requires careful cost monitoring.
Program management support for complex defense systems can be prone to scope creep.
DCGS-A program has faced historical scrutiny regarding effectiveness and integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to VIATECH, INC.. AWARD OF SOLICITATION S3R-0516, DISTRIBUTED COMMON GROUND SYSTEM-ARMY (DCGS-A) PROGRAM MANAGEMENT SUPPORT. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is VIATECH, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2012-09-28. End: 2016-03-03.

What is the specific nature of the program management support provided to DCGS-A under this contract?

The contract specifies 'Program Management Support' for the Distributed Common Ground System-Army (DCGS-A). This typically encompasses a range of activities crucial for the lifecycle management of a complex defense system. These activities can include planning, organizing, directing, and controlling resources to achieve program objectives. Specific tasks might involve budget management, schedule tracking, risk assessment and mitigation, coordination with various stakeholders (government personnel, other contractors, end-users), acquisition support, logistics coordination, and ensuring compliance with program requirements and policies. The exact scope would be detailed in the contract's Statement of Work (SOW).

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost compared to other contract types?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, making fixed-price contracts unsuitable. While the fee is fixed, the total cost can fluctuate based on the actual allowable costs incurred. If costs escalate due to unforeseen issues, inefficiencies, or scope creep, the total contract value (costs + fee) will increase. This contrasts with fixed-price contracts where the contractor bears more risk for cost overruns. For taxpayers, CPFF contracts require diligent oversight to ensure costs are reasonable and necessary, as the government absorbs the majority of the cost risk.

What is the historical spending trend for DCGS-A program management support?

Historical spending data for DCGS-A program management support prior to this $26.7 million award would require a deeper dive into federal procurement databases. However, the DCGS-A program itself has been a significant and long-standing initiative within the Army's intelligence architecture, undergoing various upgrades and sustainment efforts. Given its critical role, it's reasonable to assume that program management support has been a consistent requirement over many years, likely involving substantial cumulative spending. Analyzing past awards for similar support services related to DCGS-A or its predecessors would provide context on the scale and duration of this type of investment.

What are the key performance indicators (KPIs) used to evaluate Viatech, Inc.'s performance on this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the award abstract. However, for program management support contracts, typical KPIs often revolve around schedule adherence (meeting milestones), budget performance (staying within allocated funds), quality of deliverables (reports, analyses, plans), risk management effectiveness (identification and mitigation of program risks), and stakeholder satisfaction. The Defense Contract Management Agency (DCMA) would likely monitor these aspects, and performance would be formally assessed through contractually defined metrics and potentially through contractor performance evaluation systems like CPARS (Contractor Performance Assessment Reporting System).

Are there any known issues or controversies associated with the DCGS-A program that might impact this contract?

The DCGS-A program has faced scrutiny and criticism in the past, particularly concerning its effectiveness, user adoption, and integration challenges. Reports from government watchdogs and media outlets have highlighted issues related to the system's complexity, its ability to meet the needs of tactical intelligence soldiers, and the overall value proposition. While this contract focuses on program management support, any ongoing challenges or shifts in program direction for DCGS-A could indirectly affect the scope, priorities, or even the long-term viability of the support services required from Viatech, Inc.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: D & S Consultants Inc. (UEI: 792244097)

Address: 615 HOPE RD STE 3A, EATONTOWN, NJ, 07724

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,352,234

Exercised Options: $27,352,234

Current Obligation: $26,663,341

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE407

IDV Type: IDC

Timeline